Civil Society and Industry Associations Call for an End to Free Pollution Permits for Industry

Posted on 04 May 2022
Coal smoke stacks
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In a joint effort 28 organisations, including NGOs and industry associations, have sent a letter to members of the European Parliament Environment (ENVI) committee calling them to support higher climate ambition and phase out free allowances to polluting industries as part of the revision of the EU Emissions Trading System (ETS).

The Parliament’s Industry committee already voted on its opinion on the ETS in late April, but failed to meaningfully improve the Directive, continuing the overgenerous handout of free allowances to industry, a key barrier to the urgently needed transformation of the European economy.

It is now up to members of the ENVI committee to vote for a strong and ambitious revision of the EU carbon market on May 16. In order to strengthen the ETS, the signatory organisations call on members of the European Parliament to support the following:
  • Strengthening the overall ambition of the ETS beyond the Commission proposal
  • The phase out of free allocation of ETS allowances as soon as possible, making it the exception rather than the norm
  • Reinvesting additional auctioned EU ETS allowances to support the green transition and address investment gaps
  • No free allocation to sectors covered by CBAM, and no Carbon Leakage Protection Reserve
  • Strengthened and earlier revision of the ETS benchmarks
  • The creation of a comprehensive and holistic policy framework